Markets
Ethereum Outperforms Market Rising to $3,900 After ETF Approval, Pectra Update in Spot
Ethereum the price rose to a two-month high of more than $3,900, less than a week after the US Securities and Exchange Commission (SEC) approved 19b-4 filings for eight exchange-traded funds (ETF) related to the digital asset.
This caps off a week of positive performance for Ethereum, significantly outpacing the top 10 cryptocurrencies by market capitalization. During the reporting period, the value of ETH increased by approximately 27%, while Bitcoin saw a modest 2% gain.
New ATH?
Multiple Stakeholders Highlighting How Spot Bitcoin ETFs Catalyzed 70% increase in BTC prices I believe the price of ETH could follow a similar trajectory towards a new all-time high.
Experts noted that the approval of the ETF showed that crypto has gained more recognition as a viable financial asset class and would witness more institutional adoption.
Executive Chairman of MicroStrategy michael saylor corroborated this view during a recent podcast appearance. According to him, the approval of an ETH ETF further legitimized the emerging industry, thus encouraging institutions to allocate more capital into various digital assets. This comes after Saylor recently declared that Ethereum ETFs would never be approved and Ethereum was labeled as a security.
About that, Arthur Cheongfounder of DeFiance Capital, he said The price of ETH could reach $4,500 before ETFs begin trading because the asset is currently underrepresented in cryptocurrency portfolios.
Banking giant JPMorgan has foreseen that the ETF will be launched before the US presidential elections.
Petra Update
Another major catalyst that would fuel ETH’s upward momentum is the upcoming Pectra upgrade, which top developers plan to throw during the first quarter of next year.
Pectra is Ethereum’s next major upgrade following the successful implementation of Dencun in March. The update aims to enhance the Ethereum Virtual Machine (EVM) with the Ethereum Virtual Machine Object Format (EOF) and includes 11 improvement proposals.
Notably, the developers said they would replace the account abstraction EIP-3074 with the most advanced EIP-7702, presented by the co-founder of Ethereum Vitalik Buterin. The EIP-7702 allows externally owned accounts (EOAs) to operate as smart contract wallets during transactions, simplifying the user experience and increasing security.